MS uses preemptive damage control before today's NPD (Shortages are real)

[pswii60]

SAN FRANCISCO (Reuters) - Microsoft Corp (MSFT.O: Quote, Profile, Research) is seeing shortages of its Xbox 360 video game console in the United States, as the company failed to anticipate strong post-holiday demand, an executive said on Wednesday.

"We are really running short of product here in the United States," Jeff Bell, head of global marketing for Microsoft's games business, said in an interview. "You could say we misjudged demand."

The comments came a day before market research firm NPD is expected to release video game sales data for January and Bell said Microsoft was hoping to "manage expectations."

"We're literally out of stock in many stores. We think this will have an impact on our sales," Bell said. "It may cause the overall industry number to be down a little bit.

"Retailers have been really upset, they are on allocation. It is a lag I think we're seeing in January and that may continue into February, then as spring ramps up, we'll be able to meet that demand."

Microsoft sold nearly 1.3 million Xbox 360 consoles in the United States in December, when the entire video games industry gets a boost from holiday shopping.

The Xbox 360 competes with Nintendo Co Ltd's (7974.OS: Quote, Profile, Research) Wii console, as well as Sony Corp's (6758.T: Quote, Profile, Research) PlayStation 3.

http://www.reuters.com/article/technologyNews/idUSN1337448620080213

 

[CoG]

First month PS3 > 360 in US confirmed?

 

[Neo C.]

There is clearly an artificial shortage to keep the demand high.




...oh, wait...

 

[Thunder Monkey]

First month PS3 > 360 in US confirmed?

Could definitely mean so.

But if so... I don't think either will be close to 200,000 units.

 

[godhandiscen]

Damage control or not, at least is a "honest" spin.

 

[The Innocent X]

If demand is strong as they say, then we should see 360 ahead of PS3. If not, then they are lying. <250K would not be strong demand IMO, just a cock up.

 

[Son of Godzilla]

First month PS3 > 360 in US confirmed?

It's more likely that Jeff Bell is trying to mitigate the blow to the economy a low selling 360 might cause.

If demand is strong as they say, then we should see 360 ahead of PS3. If not, then they are lying. <250K would not be strong demand IMO

Your opinion is stupid.

 

[Kyoufu]

First month PS3 > 360 in US confirmed?

I will be very surprised if that happens so soon into 2008. PS3 hasn't had a blockbuster exclusive released yet.

 

[eznark]

My favorite part:

"We're literally out of stock in many stores. We think this will have an impact on our sales,"

Hmmmm, perhaps?

 

[Walshicus]

If demand is strong as they say, then we should see 360 ahead of PS3. If not, then they are lying. <250K would not be strong demand IMO, just a cock up.

Not to comment either way on the 360<>PS3 thing, he did say that shortages went hand in hand with high demand. You can only sell what you have.

 

[Roders5]

I will be very surprised if that happens so soon into 2008. PS3 hasn't had a blockbuster exclusive released yet.

Err, the whole point is that MS has shortages, did you even read the thread?

 

[DeaconKnowledge]

This press release makes it sound like the real shortage is just starting.

 

[carlosp]

every RROD xbox = +1 new xbox sale :lol

 

[Chinner]

Sometimes I wonder if Micro$$$$oft even bother to look 2 months into the future.

 

[Randy Lanzarote]

Don Mattrick also confirmed the shortages in that impromptu MajorNelson podcast this week, I guess this is just to make it more official for the city folk.

They must be stockpiling for GTA4, they can't go from selling over 1 million in December to suddenly struggling to get a few 100k in stores during January. Granted they probably maxed out production and were shipping as many as they sold, but its not like FABs take a day off chip production.

Risky tactics in my opinion, MS shouldn't be getting cocky from one two good financial quarters, Playstation is not a brand they should be taking lightly, this isn't some freeware OS we are talking about here.

 

[Wollan]

Sometimes I wonder if Micro$$$$oft even bother to look 2 months into the future.

And then suddenly they release a redesigned X360 console with built in Wifi for $299.

 

[Pachael]

I think Microsoft have looked at the initial numbers and are shocked that it's low.

 

[Kyoufu]

Err, the whole point is that MS has shortages, did you even read the thread?

So what? Nintendo has shortages with Wii and still outsells it's competition.

Or maybe I'm just too used to the PS3 being outsold by the 360 month by month.

 

[Fredescu]

I'll not have this, the shortages are made up! Snah told me so!

 

[Sean]

First month PS3 > 360 in US confirmed?

If it's ever going to happen, now would be the month with MS being crippled by their hardware shortage. Retailers haven't gotten any 360 shipments at all in January AFAIK.

I am expecting 360 to have its lowest numbers yet this month. Under 150k.

 

[Chinner]

And then suddenly they release a redesigned X360 console with built in Wifi for $299.

but but but giving the consumer the options!

 

[Psychotext]

So what? Nintendo has shortages with Wii and still outsells it's competition.

Nintendo's still ships more consoles than any other manufacturer. Their shortages are slightly different (and more long term).

 

[pswii60]

every RROD xbox = +1 new xbox sale :lol

Au revoir.

 

[itsgreen]

We all know it is true.

God can't wait for 'PS3 wins !!'

 

[Onions]

you fools...

ms: oh yes, we have some serious shortages, there is no way we could possibly beat almighty ps3 with these shortages.

come the numbers: bam! 360 > ps3

ms: oh rly? hmm didn't see that comin' 360 is a beast isn't it? mehmehmehmehmeh!

 

[RamzaIsCool]

I wonder why MS has these shortages. They did pretty good this last holiday, but nothing really extra ordinary if you solely look to hardware sales. Maybe they have changed the manufacturing so the rate of faulty hardware decreases, but this lead to la lesser output of consoles...dunno.

 

[Dever]

every RROD xbox = +1 new xbox sale :lol

Microsoft gives you a new one for free, you know..

 

[The Innocent X]

The bigger question is: cock up or planned move to new SKU/price/business/whatever?

 

[Parl]

Artificial shortage?

 

[cedric69]

every RROD xbox = +1 new xbox sale :lol

Sure, the world is full of people that prefer to spend three hundred bucks or more instead of waiting a couple of weeks. Why not? :lol

 

[pswii60]

you fools...

ms: oh yes, we have some serious shortages, there is no way we could possibly beat almighty ps3 with these shortages.

come the numbers: bam! 360 > ps3

ms: oh rly? hmm didn't see that comin' 360 is a beast isn't it? mehmehmehmehmeh!

Either way NPD tonight will be fun times, no matter what happens.

 

[Walshicus]

The bigger question is: cock up or planned move to new SKU/price/business/whatever?

Þor knows. It does seem like something is in the works, but that's nothing but gun instinct and speculation. People *do* have a tendency to romanticise things.

 

[Tieno]

Artificial shortage?

Then they're fucking stupid as shit. They're stupid for even underestimating demand for january.

 

[Tmac]

Fun indeed. I'm waiting.

 

[Wollan]

How many hours until NPD?

 

[ThirdEye]

I bet "strong post-holiday demand" will continue into this summer.

 

[Tieno]

How many hours until NPD?

You're in Europe, right? Isn't this around 23:00-24:00 european time here?

 

[ThirdEye]

The bigger question is: cock up or planned move to new SKU/price/business/whatever?

New SKU without a DVD drive?

 

[Wollan]

You're in Europe, right? Isn't this around 23:00-24:00 european time here?

Could be. I just wander in randomly when they appear. I will catch it tomorrow then.

 

[itsgreen]

You're in Europe, right? Isn't this around 23:00-24:00 european time here?

0030 for western europe
2330 for uk

 

[HocusPocus]

They had to plan for 250k minimum for the month, maybe they sold more than that.

 

[The Innocent X]

New SKU without a DVD drive?

Radical, but I like it!

 

[pswii60]

If there was a new SKU on the way, we'd have heard leaks about it by now. Hell, we even knew about the 40gb PS3 months before it happened.

 

[gofreak]

Still think 360 will beat PS3. I doubt the 360 numbers can be all that bad, just down relatively on what they usually are..but, again, still ahead of PS3 IMO. We'll see.

 

[Frillen]

Could be. I just wander in randomly when they appear. I will catch it tomorrow then.

00.30 our time (Norwegian)

 

[sinnergy]

First month PS3 > 360 in US confirmed?

What if PS3 doesn't manage to even outsell X360 with these X360 shortages...

That's much more interesting stuff for GAF threads.

00.30 our time (Norwegian)

Yeah not staying up for this stuff, never have. I always read the 50 pages in the morning :lol

 

[Beer Monkey]

Did anybody really think that there weren't shortages?

 

[bluheim]

But if so... I don't think either will be close to 200,000 units.

Didn't Microsoft failed to anticipate strong post-holiday demand ? 200 000 units is not a strong demand. If there are shortages due to a strong demand, this means at least 500-600 000 Xbox 360 sold in January.

 

[AniHawk]

Did anybody really think that there weren't shortages?

Nah.

 

[Hammer24]

If demand is strong as they say, then we should see 360 ahead of PS3. If not, then they are lying. <250K would not be strong demand IMO, just a cock up.

You nailed it. "Strong demand" would mean at least 250k.